Roku stock (NASDAQ:ROKU) is 11.6% lower after hours Thursday following its fourth-quarter earnings, where the company missed revenue expectations as player sales fell by 9%, and the company guided to the low side for current-quarter revenues.
Revenues grew 33% year-over-year to $865.3 million, though analysts had expected nearly 38% growth. While Platform revenues grew 49% to $703.6 million, Player sales had a rougher holiday, dipping 9% compared to the fourth quarter of 2020, to $161.7 million.
The Player segment posted a gross loss as well, of $45.9 million vs. a year-ago gain of $4.6 million. Platform gross profit jumped 41% to $425.6 million.
While active account growth sped up from the third quarter, it rose 17% year-over-year to land at 60.1 million accounts. Streaming hours were up 15% to 19.5 billion, and average revenue per user jumped 43%, to $41.03.
For the full year, it hit record revenue, gross profit, EBITDA and ARPU, CEO Anthony Wood notes.
"Roku’s founding vision remains true: All TV and all TV advertising will be streamed. Almost every major media company is reorienting its business around streaming and has launched a flagship service, spending billions on content and marketing to attract and retain subscribers. At the same time, with the significant gap that exists between viewership and ad budgets, we are still in the early days of the secular shift to streaming," reads the letter from Wood and Chief Financial Officer Steve Louden.
The company guided to first-quarter revenue of $720 million, well short of analyst expectations for $756 million, and forecast EBITDA of $55 million vs. an expected $78.4 million.
"For 2022, we expect ongoing supply chain disruptions will continue to impact the global economy. This will affect the broader consumer electronics space, and the TV industry in particular. Overall TV unit sales are likely to remain below pre-COVID levels, which could affect our active account growth," the company says.
Conference call to come at 5 p.m. ET.
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